What are shares?
It’s a means to own a company.
The definition of ‘Securities’ as per the Securities Contracts Regulation Act (SCRA), 1956, includes instruments such as shares, bonds, stocks or option marketable securities of associated nature in or of any incorporate company or body corporate, admin securities, derivatives of securities, units of cumulative investment intend, merger and rights in securities, security receipt or any new instruments correspondingly avowed by the Central Government.
What is Share Trading?
Shares trading deliver to buying and selling of company shares – or any derivative products based as regards company accrual – plus the motive of profit earning.
Prerequisites for Share Trading
We showing off to have DP(DEPOSITORY PARTICIPANT) account.
We obsession to have a Trading account
And of course money
How Trading Happens?
Companies make a get of your hands on themselves listed regarding popular gathering exchanges later NSE, BSE
Interested traders using terminal provided by their brokers trade upon those shares.
Online Trading participants
Investor- Participates through website of brokerage using internet and computer.
Brokers- they admittance each supplementary through trading terminals and they as well as believe to be who is enthusiastic to get your hands on or sell shares.
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Stock row- It facilitates transactions through its servers. Most dominant accretion argument in India are NSE and BSE
Registrar of Company-It is a doling out body that maintains archives of every one of shareholders and updates database changes whenever ownership changes.
Depositories- It includes depository participants which stores shares in electronic format.
SEBI (Securities Exchange Board of India)- SEBI is a presidency body which regulates financial markets and looks into Investor complaints neighboring-door to companies.
Kinds of Trading
Intraday trading
Delivery based trading
Intraday Trading
Intraday trading includes buying and selling of stocks within the same trading hours of day. The stocks purchased in this simple of trading, are not purchased when an position toward to invest, but for the aspire of earning profits by analysing the movement of postscript indices.
Deliver based Trading
Delivery based trading means buying shares and holding them for pardon time of era is called delivery based trading.
In this method you have to area your buying demand through your broker and have the funds for the current price of the p.s.. Once your request is executed the stocks that you have bought are deposited to your DP account. In this process you have to pay the full amount of the accretion price. Once the stocks are deposited to your account you can later sell the stocks or maintain them for as long as you ache.